The Minister of Finance, Kemi
Adeosun, has revealed that the federal government would apply $3 billion in
refinancing the legacy debts of the immediate past government of Goodluck
Jonathan.

According to Adeosun, the outlay
is part of the $5.5 billion foreign loan being sourced from the International
Financial Markets.

The Minister, who appeared on
Arise TV’s News Programme on Wednesday, said the proposed $5.5 billion loan was
made up of two components which are the refinancing of heritage debts of the
past administration to the tune of $3 billion and new borrowing of $2.5 billion
for the 2017 Budget.

She said, “Let me explain the
$5.5 billion borrowing because there have been some misrepresentations in the
media in the last few weeks.

“The first component of $2.5
billion, represents new external borrowing provided for in the 2017
Appropriation Act to part finance the deficit in that Budget.

“The borrowing will enable the
country to bridge the gap in the 2017 budget currently facing liquidity problem
to finance some capital projects.

“The second component represents
$3 billion for refinancing of heritage debts of the past administration.”